DeFi: Easily cash Liquidity Mining returns on Uniswap via imToken
The DeFi ecosystem has been growing rapidly over the past half year:
- Cumulative $100 million: 160 days
- $500 million: 495 days
- $1 billion: 263 days
- $2 billion: 146 days
- $3 billion: 20 days
- $4 billion: 4 days
We see two reasons for this: Increase in ETH and BTC value, and second, liquidity mining.
Liquidity mining is the practice to give away a protocol token in order to attract users that in turn lock tokens in the protocol.
A lot of DeFi projects have recently been launching governance tokens as their own protocol tokens. Holding these tokens makes you a decision maker in questions of the protocol strategy such as which tokens get listed etc.
All it takes to start liquidity mining yourself is to lock liquidity, in USDT or DAI or ETH … to start ‘mining’. That’s all it takes for liquidity mining.
The DeFi sector has improved and attracted the attention of insiders as well as crypto outsiders. Compound — with it’s ‘COMP’ governance token, for example, sparked the recent liquidity mining fever in the DeFi market.
Read more about COMP here: https://defirate.com/comp-distribution/
The question we would answer is, after obtaining a governance token, what’s the easy way to sell it for stable coins or ETH?
Since, imToken (and other wallets) support WalletConnect, you can easily cash out the tokens using your wallet app on mobile or laptop/desktop.
How to use Uniswap for cashing out new tokens
Uniswap is a decentralized exchange in which anyone can add any ERC-20 token trading pair. This feature enables Uniswap V2 to provide good support for new currency transactions. As a result, COMP and YFI governance tokens are preferred to be listed on Uniswap and can easily be exchanged for ETH or stable currency on their DApp.
How to use Uniswap with imToken on your laptop or desktop computer
First, open either open Uniswap in your imToken app, or open Uniswap (https://app.uniswap.org/#/swap) on your laptop or desktop computer.
Next, click “Connect to a wallet” on the Uniswap web page and select “WalletConnect”, then use imToken to scan the QR code.
After a successful connection, select the currency to be traded on Uniswap.
If it is the first time you are transacting in a certain currency, you need to authorize the currency first. Choose a full or limited authorization and then confirm the transaction in imToken.
Next, wait for the authorization transaction to succeed. This step will take some time, especially in times of network congestion. Use the gas fee setting suggested by imToken to avoid long waiting times.
After a successful authorization, select “Swap” and confirm the transaction in imToken.
Wait for the transaction to be confirmed. Uniswap will let you know when the transaction went through. Pull down and refresh the imToken asset page to see the asset update.